32. Operating costs

HVB Group new	2006 € millions	2005 € millions
Payroll costs	(2,216)	(2,212)
Wages and salaries	(1,837)	(1,821)
Social security costs	(260)	(257)
Pension and other employee benefit costs	(119)	(134)
Other administrative expenses	(1,166)	(1,260)
Amortisation, depreciation and impairment losses	(313)	(413)
on property, plant and equipment	(174)	(260)
on software and other intangible assets, excluding goodwill	(139)	(153)
Total	(3,695)	(3,885)

A long-term incentive programme including share-based remuneration transactions featuring compensation in UniCredit shares (stock options and performance shares) has been set up for executives of all UniCredit Group companies selected using defined criteria. The stock options grant entitlement to purchase a UniCredit share at a price which was fixed before the option was issued. A set number of UniCredit shares (performance shares) is transferred free of charge if, after a period of three years, the relevant targets have been met and the beneficiary is still working for the UniCredit Group.

Information on stock options

	2006 Stock options	2005 Stock options
Number	2,658,900	2,933,500
Strike price (€)	5.951	4.817
UCI stock market price (€)	5.951	4.817
Date of granting	June 23, 2006	Nov. 25, 2005
Start of exercise period	June 23, 2010	Nov. 25, 2009
End of exercise period	Dec. 31, 2019	Dec. 31, 2018
Fair value of each option at granting date (€)	1.269	1.0548

Information on performance shares

	2006 Performance shares	2005 Performance shares
Number	1,142,300	1,256,800
UCI stock market price (€)	5.951	4.817
Date of conditional granting	June 23, 2006	Nov. 25, 2005
Granting upon satisfaction of criteria	Dec. 31, 2009	Dec. 31, 2008
Fair value of each performance share at granting date (€)	5.574	4.461

The fair value on the date of granting is recorded as an expense on the basis of the expected number of options exercised/performance shares granted over the period or vesting period of the respective programme. The corresponding expenses for the executives of the new HVB Group totalling €3 million in 2006 will be reimbursed to UniCredit when they fall due.